No Volkswagen Scirocco for the U.S.

The return of the Phaeton could be the consolation prize.

The decision has been made: no Volkswagen Scirocco for North America. Stefan Jacoby, president and CEO of Volkswagen of America, revealed the decision to Car and Driver in an interview at the L.A. auto show.

The four-passenger coupe will go on sale in Europe in mid-2008, and here are the first official (albeit leaked) pictures of it. But the U.S. already has the GTI and the R32, which are enough halo vehicles for what is a niche segment, Jacoby says.

"We need to focus on our core products," he says, namely, the Rabbit (Golf), the Jetta, the Passat, and the launch of the Tiguan compact SUV. "The [2009 Scirocco] is lovely, but we can't have everything."

Meanwhile, Jacoby confirmed that the launch of the 2009 Jetta TDI is being pushed back from spring 2008 to late summer due to problems with the emissions system.

"We have a solution and are working on it," Jacoby says. Part of the delay is that the car must go through emissions testing and validation again, but in the interim, VW can begin dealer training to be ready when the vehicle is okayed for sale.

"We need to launch with proper emissions and quality," he says, noting the vehicle is essential to customers' acceptance of the expanding TDI offerings. Jacoby says even with the delay, VW still will be the first manufacturer to offer diesel technology compliant with emissions regulations in all 50 states. And VW will use its fleet to promote diesels in general in the U.S., he says.

Diesel-Powered Phaeton

One such statement: If the VW Phaeton returns to the U.S., it is likely to have a diesel engine—and only a diesel engine. Although the initial expectation was that the luxury full-size sedan would not be sold again in the U.S. until the next generation bows, Jacoby now tells us the current sedan might make a comeback.

The Phaeton has been on sale in Europe since 2002. A long-wheelbase version of the sedan, which marked VW's first foray into the high-end luxury segment, went on sale in the U.S. a year later, but was pulled in 2006 due to slow sales.

"There is no reason to relaunch with the same as what we had before," Jacoby says of the 335-hp, 4.2-liter V-8 and 420-hp, 6.0-liter W-12 engines in the original U.S.-spec Phaeton. "We need something to stand out from the old one. It needs a unique selling point. What else do we have but diesel?" he asks, in describing the kind of bold move VW would need to relaunch the flagship sedan.

As for avoiding past pitfalls of trying to sell a VW-badged luxury sedan, Jacoby's unsatisfactory answer is that with the right products the brand can successfully broaden its lineup and achieve widespread appeal.

Built in the U.S.A.

As for VW's exploration of building a vehicle-assembly plant or an engine-assembly plant—or both—in the U.S. as a currency hedge, Jacoby says the decision will be made in the first half of next year. The automaker's only North American plant is in Puebla, Mexico, where the New Beetle and the Jetta (the Bora in other markets) are built.